057: University Crossings Case Study Part 2

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What happens when you sign the dotted line and officially go under contract That doesn t mean it s a done deal You re not out of the woods yet because there s still a lot of moving parts to manage Here s part 2 of 3 regarding my University Crossings deal I share what went wrong what went right and how I overcame obstacles that are often part of multifamily transactions Topics on Today s Episode Receive required items documents identified on Purchase and Sell Agreement PSA Letter of Intent LOI from seller Seller s Coma Seller is unmotivated to give you details due to poor record keeping or they re trying to hide something Establish site visit and physical inspection to rate asses property s major systems Give all vendors the same instructions ask them for a fair and do-not-exceed bid 45 calendar days for due diligence and another 45 calendar days to close Perform financial audit of property s current leases on file Engage a lender to get a loan for the property based on occupancy percentage loan is in jeopardy and extension may be needed if percentage isn t maintained Owner should never try to negotiate with a broker or seller let others talk for you Lack of communication between all parties involved causes problems and delays request phone conversation with seller to offer clarification Concessions may be necessary even if something is not your fault you ll end up making that money and more back Lender isn t ready because they did not process the loan to close on the property which put me at risk of losing money Links and Resources Mentioned Freddie Mac Fannie Mae Quotes Our due diligence does not start until they have delivered it we have to sign off and say that they have delivered all items Corey Peterson Do not think we re stupid We want you to be fair We want you to be upfront and we don t want you to think that you re just going to get rich off of us Corey Peterson Negotiation – everybody goes in with a gun but no one has any ammo Corey Peterson We had leverage at this point and leverage my friend is very very vital to being a good operator Corey Peterson Don t forget to download my Free Workshop Quickstart Video Series and if you like what you have heard please leave a review on iTunes Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family Click here to visit this podcast episode